CZI - Cassini Resources

[System]

On 12th August 2011, Cassini entered into Share Sale Agreement to acquire the 100% of the issued capital in Wirraway Metals and Mining Pty Ltd. The assets of Wirraway include 14 tenements in Western Australia with either granted or pending applications for prospecting licences to the WA Mines Department. Wirraway's projects are primarily prospective for base metals (Gold, Copper, Nickel) and Platinum Group Elements (PGE's).

http://www.cassiniresources.com.au

 

[Paavfc]

I have taken a position in CZI it looks an absolute bargain @ 4c and $2m MC

Former BC Iron Chairman and one of WA's best geos consulting this could prove a very good investment...

 

[Paavfc]

Amazing deal by Mike Young and CZI

Deal of the century and still a micro cap with plenty of upside.

Well done management..

 

[skc]

I have taken a position in CZI it looks an absolute bargain @ 4c and $2m MC

Former BC Iron Chairman and one of WA's best geos consulting this could prove a very good investment...

Top call!

BHP has a habit of selling things cheaply... it's a drop in the ocean for BHP, but a potential company maker for CZI.

 

[barney]

I have taken a position in CZI it looks an absolute bargain @ 4c and $2m MC

Former BC Iron Chairman and one of WA's best geos consulting this could prove a very good investment...

Its your shout "Lucky" well done.

 

[Paavfc]

Still undervalued imo.
Even SIR didn't go up in a straight line......

 

[brty]

We sold part of our holding in this today, at 23c, to reach a break even status (a few thou profit). We were in the top 20 before the sale. First time ever we've had a $100k up day.

I'm holding the rest for a ride, it will be wild and tempting. On the one hand there is an experienced team, (why we were in), a huge resource/ group of resources...

While on the other hand it is in the middle of nowhere.

Current market cap $14.5m counting options, total ~56.8m shares and 12m oppies.

If a small company had found a new resource with the grades and depths of Nebo- Babel and Succoth, over a couple of months, it would be trading at over $100m market cap.

People just don't believe this yet. It will soon sink in to the minds of many exactly what CZI have gained. If they went looking for JV partners, there would be a line at the door in no time.

Am I gloating and happy, absolutely. Still hold over .5% of the company.

I just can't believe BHP gave this away. It was only last month that the CEO was claiming a shortage of copper in 2017/18 onwards, worldwide, with demand outstripping supply by then, yet they give away resources like this.

GLTAH.

brty

 

[Paavfc]

We sold part of our holding in this today, at 23c, to reach a break even status (a few thou profit). We were in the top 20 before the sale. First time ever we've had a $100k up day.

I'm holding the rest for a ride, it will be wild and tempting. On the one hand there is an experienced team, (why we were in), a huge resource/ group of resources...

While on the other hand it is in the middle of nowhere.

Current market cap $14.5m counting options, total ~56.8m shares and 12m oppies.

If a small company had found a new resource with the grades and depths of Nebo- Babel and Succoth, over a couple of months, it would be trading at over $100m market cap.

People just don't believe this yet. It will soon sink in to the minds of many exactly what CZI have gained. If they went looking for JV partners, there would be a line at the door in no time.

Am I gloating and happy, absolutely. Still hold over .5% of the company.

I just can't believe BHP gave this away. It was only last month that the CEO was claiming a shortage of copper in 2017/18 onwards, worldwide, with demand outstripping supply by then, yet they give away resources like this.

GLTAH.

brty

Well done on your profit..

To be in the top 20 you must have had quite a holding.
Turnover today was huge once that dries up we could really see a run.
A lot of sellers like yourself locking in profit.

 

[brty]

After today's trading, I wouldn't be surprised to see a few large miners turn up on the top 20 list. Some like OZL and SFR have cash but no resource they are capable of following from that at present. (Carapateena now too expensive for OZL).

If they haven't grabbed a strategic stake, they are fools. (that's also possible). Hopefully the directors have worded up a few rich sources of their own to watch out for a good Ann.

When Sirius found/announced Nova, the directors bought up big themselves on the day of the Announcement, and announced this the following day from memory, then they were away. I'm hoping the board has done likewise here to really put a fire under it.

A $100m market cap would send this to over $1.40/s, easily possible in the next few weeks. Is this worth $100m to OZL? in a heartbeat.

 

[Paavfc]

Id like to see the options exercised to increase funds in the bank...
Directors buying yesterday would be a great bonus imo and a vote of confidence.

once the dust settles we should see a more detailed plan around the high grade areas ...

 

[brty]

Now that I've had a bit of time to digest the news and look at the big picture, it amazes me that CZI is still so cheap. There must have been a lot of short term traders getting out of their positions on Friday.

BHP has reportedly spent over $100m drilling in the area delineating the resource. There is reportedly over 1.5 M tonnes of both Ni and Cu. That is worth $26.3b for the Ni and $10.7b for the Cu at today's price and currency value.

The current market Cap of CZI is under $12m. There should be many existing miners grabbing as much of this as they can at the current price. If any of them could T/O Cassini for under $50m, they have picked up a bargain compared to the expenditure required to find and delineate a new resource. Rex Minerals, have spent over $143m on exploration and evaluation mainly on their Hillside resource. The Succoth part of what Cassini have picked up is probably a larger richer resource than Hillside by itself.

Value investors should be all over this, but most will probably pass. It is clearly exceptional value at 18c and a price of well over a dollar or 2 would not surprise. If acouple of mid to large miners get into a T/O battle, then anything is possible.

I still hold, and intend to buy more.

 

[brty]

Just running some numbers for comparison and RXM are handy to do so with, a 15mT/A plant on the existing resource announced at Hillside for RXM will produce $781m in revenue /yr.

A 15mT/A plant on Nebo-Babel on the released resource of ...... "Nebo‐Babel inferred resource 446Mt @ 0.33% Ni and 0.35% Cu"....

would produce $1.33b of revenue /yr, a current prices and for 30 years.

CZI is currently planning to pick the eyes out of the resource, and if they do that, it is easy to see them coming up with a resource as rich as Sirius's 14.6Mt at 2.2% Ni and 0.9% Cu and .08% Co.

The discovery hole for Nebo-babel was... "26.55m @ 2.45% Ni, 1.78% Cu, 0.74g/t PGE+", so the richer resource is there.

Even a small 1mT/A plant on the higher grade identified resource of "Total 0.5% cut off 33.2 Mt Ni 0.73 Cu 0.59% Co 257 ppm" would bring in $173m in revenue/yr for 33 years.

How is the value of this possibly only 18c or ~$12m total Market Cap?
Where are the miners desperate for a resource like OZL, SFR, MCR etc??
If the company has not already shored up their own supporters, there could be a bun fight over this resource.
Bottom line, outstanding value at 18c/share, don't expect to see it there for long.

 

[Paavfc]

Short term traders may live to regret selling CZI...

An $11m MC for this won't last long could easily be a $100m MC therefore plenty of upside.

Looking forward to more detail on CZI's plans for Nebo-Babel and Succoth could be a wild card smokey.

Stars aligning here imo...

 

[barney]

Congratulations to you gentlemen for picking a nice little earner in its Spec stage. I hope it continues north on both fundamental and technical reasons so you can both retire in the Bahamas in a year or two

I notice in the Company's last Quarterly, they are not overly endowed with Cash ..... Some form of revenue raising will be required I assume? Any thoughts on the extent and effect of that at this stage?

Cheers, and well done.

 

[brty]

Barney,

Have a look a Sirius. They were low on cash and a 5c/share company, down to the last roll of the dice. Directors took up their options and once he share price had risen to over a dollar, they did a placement of 10m shares at 76c to keep them going.

Sirius had 150m shares and only owned 70% of the find (it is amazing what info you find on other forums). Cassini has 56.8m shares and the original geologist who found Nebo-babel for WMC, Jon Hronsky on the board.

If they are patient, the share price will rise enough so that any placement will be without too much dilution. The directors already hold a significant number of shares and wont want much dilution.

Everyone seems to be worried about a cap raise keeping the price down, yet that's probably not on the radar just yet. They have a truely world class resource given away by BHP, it is amazing how money just appears when you have the right resource.

 

[barney]

Barney,

Have a look a Sirius. They were low on cash and a 5c/share company, down to the last roll of the dice. Directors took up their options and once he share price had risen to over a dollar, they did a placement of 10m shares at 76c to keep them going.

Sirius had 150m shares and only owned 70% of the find (it is amazing what info you find on other forums). Cassini has 56.8m shares and the original geologist who found Nebo-babel for WMC, Jon Hronsky on the board.

If they are patient, the share price will rise enough so that any placement will be without too much dilution. The directors already hold a significant number of shares and wont want much dilution.

Everyone seems to be worried about a cap raise keeping the price down, yet that's probably not on the radar just yet. They have a truely world class resource given away by BHP, it is amazing how money just appears when you have the right resource.

Thanks for that brty, I guess in many ways it may come down to how savvy current management are .... Considering the Resource they appear to have attained, you would think they are reasonably clever, so that is a good sign. Tomorrows open/close will likely tell a lot of the short term potential. If it is to carry on upwards, tomorrow would not want to retrace like it did on Friday. If it pushes up on the open and follows through into the close with reasonable volume, I'd say holders will be feeling fairly comfortable .... Good luck with it.

 

[Paavfc]

Id say look at Mike Youngs track record.. he built BC Iron now a $5 share plus healthy dividends.
Helped build BMN into what was a $2.20 at on stage.

Pulled off this amazing deal for CZI shareholders.

He has a great track record imo...

 

[tinhat]

Thanks for the tip everyone. I found this discussion on the weekend. Nice timing. Did some looking into CZI and jumped on first thing yesterday @18c. I closed out some dud positions in other speckies to free up the funds which is cathartic in itself.

 

[Paavfc]

Welcome aboard enjoy the ride..

 

[Porper]

Welcome aboard enjoy the ride..

I have no idea whether it's great fundamentally or not. What I do know is that it's being ramped to Hell and back on other forums as well. Often ends in tears.